Hong Kong housing correction of 15% possible, Gaw Capital says

(Sept 14): A correction in Hong Kong property prices of as much as 15% in the first half of 2019 is possible as interest rates rise and the tide of money flowing in from mainland China recedes, according to Kenneth Gaw, president of Gaw Capital Partners.

That could present a buying opportunity for the Hong Kong-based private-equity firm, which recently purchased a portfolio of shopping malls in the city and which is in the process of raising its sixth Asian fund, Gaw said on the sidelines of the Milken Institute Asia Summit in Singapore on Thursday.

“The Hong Kong market has been going up for the last 10, 15 years,” Gaw said. “With interest rates going up, less money coming in from China, I think, very possible, there is a correction.”

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